Yesterday I ran a workshop with 8 SaaS CEOs about “Framing a unique Product Market Fit.”
Asking about how every participant felt about ‘Product Market Fit,’ the overall conclusion was: “It’s very challenging.”
One quote I got was this one:
“We’ve done all the research about the big problem in the market and believe we have the solution, but the market wants something else. So many of the big companies we talk to are not interested.”
Here’s the thing
There’s a big difference between Product-Problem-Fit and Product-Market-Fit. It could very well be that you’ve already found Product-Problem-Fit, but that doesn’t mean people will pull your product from your hands.
Here is where segmentation comes in. In B2B, no company is equal – even if they look the same on the outside. So worldviews are critically important, i.e., what people stand for, what they believe, what they aspire to, and what they care about.
The problem? The definition of Product-Market-Fit has blurred for many of us. We have come to believe that ‘The market’ equals TAM (Total Addressable Market). That’s far too vague – and that’s costly and risky.
So let’s bring it back to the essence, i.e., Product-Market-Fit has two critical components:
- Product-Problem-Fit: This is about finding a highly valuable and critical problem where you can exceed expectations.
- Product-Desire-Fit: This is about finding the exact audience (niche) willing to pay a premium.
It’s the foundation for creating predictable traction. Think about it as Product-Niche-Fit. It’s that part of the market you can own no matter what stage you’re at.
And then you expand from there. Much more fun. Much more sustainable.
Question for you to reflect upon
What characterizes the customers with whom you experience a clear Product Market Fit? What if you’d focus on finding more of those?
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